Gephardt Busts Inflation: New car prices are dropping, but still well over pre-pandemic level
Apr 19, 2022, 6:16 PM | Updated: Jun 19, 2022, 9:54 pm
SALT LAKE CITY — When you think about the “thing” that became tough to find during the pandemic, what comes to mind? You know, besides toilet paper. Yeah, cars.
Between quarantine measures, chip shortages, supply chain issues, and essential parts manufactured in war-torn parts of the world, car prices have skyrocketed.
Lord help anyone who needs a new ride. That is until now.
“We have seen a shift,” said Karl Brauer, an executive analyst with iSeeCar.com. He shared their latest data with the KSL Investigators.
It shows for the first time in two years, cars are cheaper than they were the month before.
There was a small price drop from January to February and an even slightly less small drop from February to March.
“We’re not ready to call a trend yet,” said Brauer. “But we did see those positive movements.”
Even if the price we pay for cars may have peaked, they are still going for well above pre-pandemic market values.
“I think if you are thinking of buying right now but can hold off, that’s still the best,” Brauer advised.
In the spirit of helping get prices down and busting inflation, I asked him what about those who no longer can wait for prices to come back to earth.
“Flexibility is your friend when you’re shopping for a car right now,” he explained. “If you’re very specific about a year, make model color and trim, you’re going to be at the mercy of today’s market, which isn’t a very good place to be at the mercy of.”
There is still a chip shortage and supply chain issues. So why are prices trending down? Ironically, what seems to be causing the drop in prices is inflation.
People are tightening their belts and not looking to make large purchases with economic uncertainty. Plus, a new car likely means more from your budget will go towards gas – which as you likely know – is also bonkers-expensive right now.